USD/JPY: time to buy

Kira Iukhtenko, FX BAZOOKA analyst

USD/JPY is trading to the upside on Tuesday, recovering further from the 102.00 support.

Despite the Friday’s mixed labor market data, the near-term prospects of the pair improved. The risk appetite keeps on growing. What’s more, the speculative positions for USD and JPY became more balanced.

As can be seen from the H4 chart, the pair rose above the Ichimoku Cloud that acted as a resistance last week. MACD histogram is testing the signal line to the upside. The pair has already recovered more than 38.2% Fibo from the January decline.

We see a chance to enter a long USD/JPY position on a break of 102.65 with a target of 103.00. This level remains quite strong for now, but the buy stop orders above 103.00 could accelerate the upside. The picture remains bearish as long as the pair holds above the 102.00 support.